Working Paper: NBER ID: w17023
Authors: Steven D. Levitt; Thomas J. Miles
Abstract: In determining the legality of online poker - a multibillion dollar industry - courts have relied heavily on the issue of whether or not poker is a game of skill. Using newly available data, we analyze that question by examining the performance in the 2010 World Series of Poker of a group of poker players identified as being highly skilled prior to the start of the events. Those players identified a priori as being highly skilled achieved an average return on investment of over 30 percent, compared to a -15 percent for all other players. This large gap in returns is strong evidence in support of the idea that poker is a game of skill.
Keywords: No keywords provided
JEL Codes: K23; K42
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| classification of players as skilled or unskilled (Z22) | financial performance (G32) |
| skill (J24) | poker performance (L83) |
| players classified as high skill (Z22) | total prize money received (D44) |